It's 15% yes, but your net increase by going from W-2 to 1099 is 7.5%. As a W-2 employee, you're already paying 7.5% of the 15% in withholding.
1099 Job
Discussion in 'Trucker Taxes and Truck Financing' started by BoyWander, Jul 2, 2012.
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Ask for a flat percentage of what the truck earns.
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Windsmith offered a excellent option, 25% of the pay to the truck before expenses.
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I'm not up on what an IC needs to have.
To be IC, don't you also have to provide the truck to be an IC?
If the worker does not provide the tools (truck in this case), than isn't he supposed to be on a W-2?
Since the company owner provided the tools (truck) to do the job, than aren't they liable for all other items as well?bullhaulerswife Thanks this. -
misterG - I think it's pretty much been acknowledged that the criteria for w2 vs IC has more to do with how the work is being done and when, rather than who owns the equipment. At least as far as I understood what others have said.
About being paid a % of the line haul - how could I be sure of how much a certain load pays? He could hide this info from me, or at least alter it, or BS me, and I would constantly wonder if I'm getting screwed over on it.
He gets all his freight from brokers, and I doubt he is going to want to pay 25% on a load that pays $2 a mile, that would be 50 cpm to me. -
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By law any contractor working by percentage on contract has a right to see the shipping bills.
There's a lot of drivers out here on percentage getting $.50 and more per mile and the carriers don't have a problem with it .bullhaulerswife Thanks this. -
That law only applies to a truck leased to a motor carrier. It has nothing to do with the driver.
FMCSA does not regulate driver pay and benefits, by their own admission. -
This is indeed one of the tests applied by the IRS, when determining employee/contractor status.
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explain how drivers for expedite fleet owners have been accepted as IC's for years
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QUOTE=Autocar;2682972]That law only applies to a truck leased to a motor carrier. It has nothing to do with the driver.
FMCSA does not regulate driver pay and benefits, by their own admission.[/QUOTE]
If he gets a 1099 he is a self employed contractor and should ask for a contract.You could say the carrier is leasing the driver .
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